FPE — First Trust Preferred Securities and Income ETF
Preferred & Convertible Ranked #393 of 458 tracked ETFs · Issued by First Trust
FPE Price Performance — Growth of $10,000
Value of a $10,000 investment in FPE over time, compared with SPY. Both lines are rebased to $10,000 on the first shared date. Based on total returns — prices are adjusted for dividends and splits, so this assumes distributions were reinvested. Hover or tap the chart for exact values.
FPE Drawdown
The "underwater" chart: FPE's decline from its highest prior value at each point in time. It shows how deep past losses ran and how long the fund took to recover to break-even.
What If You'd Invested in FPE?
See what a lump sum in FPE would have grown to, with the option to add a regular monthly contribution on top. Figures use total returns — dividends are assumed reinvested.
Past performance doesn't predict future results. Assumes contributions on the first trading day of each month, no trading costs or taxes, and reinvested distributions. History is limited to the range published in the site's daily return data.
Overview
First Trust Preferred Securities and Income ETF is a $5.99 billion fund issued by First Trust, currently holding a D grade with a score of 46.5 out of 100. It ranks 6th out of 8 peers in the Preferred & Convertible category and 393rd of 458 tracked ETFs overall. The fund charges an expense ratio of 0.83%, which is nearly double the category median of 0.425%. Despite the higher cost, it offers a dividend yield of 6.41%, slightly above the category median of 6.35%. The top ten holdings represent only 14.9% of assets, with Bank of America Corp comprising the largest single position at 2.5%.
The fund’s recent performance shows a divergence between short-term declines and long-term gains, with a one-year return of -2.43% compared to a three-year return of +29.96%. Short-term metrics are negative across the day, week, month, and quarter, while the year-to-date figure stands at -2.96%. This underperformance relative to the category median of -3.00% for the one-year period coincides with a rating downgrade from C to D on October 16, 2026. The current price of $16.89 sits at the very bottom of its 52-week range, representing just 1.2% of the spread between $16.87 and $18.48. Historical data is limited, with price history available for only 3.0 years.
Risk metrics indicate a defensive profile, with a beta of 0.79 suggesting the fund moves less than the broader market. Annualized volatility is labeled as Very Low at 4.04%, and the maximum drawdown has been limited to -4.65%. However, the Sharpe ratio of -1.84 reflects poor risk-adjusted returns over the measured period. Liquidity is robust, supported by an average daily volume of 1,411,728 shares. These figures collectively describe a fund that has experienced modest price declines but with low fluctuation intensity.
AI-generated summary based on the data on this page.
FPE Top Holdings
| # | Holding | % of Net Assets | Value |
|---|---|---|---|
| 1 | BANK OF AMERICA CORP | 2.52% | $159M |
| 2 | WELLS FARGO & COMPANY | 2.08% | $131M |
| 3 | BARCLAYS PLC | 1.67% | $105M |
| 4 | JP MORGAN CHASE & COMPANY | 1.35% | $85M |
| 5 | NEXTERA ENERGY CAPITAL HOLDINGS INC | 1.33% | $84M |
| 6 | BNP PARIBAS SA | 1.26% | $79M |
| 7 | XCEL ENERGY INC | 1.23% | $78M |
| 8 | CREDIT AGRICOLE SA | 1.21% | $76M |
| 9 | CITIGROUP INC | 1.20% | $76M |
| 10 | HARTFORD INSURANCE GROUP INC (THE) | 1.09% | $69M |
Holdings as of 2026-07-31 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 14.9% of net assets — a rough gauge of concentration risk (the higher this figure, the more the fund's return depends on a handful of names). To see how FPE's holdings overlap with other ETFs you own or are considering, check the Stock Overlap tool.
Which Funds Overlap With FPE
Holding two funds that own the same companies adds cost and complexity without adding much diversification. These tracked ETFs share the most names with FPE's top 10 — XLF overlaps most, holding 3 of the same companies as FPE's top 10 (5.8% of FPE's assets).
| ETF | Name | Shared Companies | FPE Weight | Examples |
|---|---|---|---|---|
| XLF | State Street Financial Select Sector SPDR ETF | 3 | 5.8% | BANK OF AMERICA CORP, WELLS FARGO & COMPANY, CITIGROUP INC |
| VFH | Vanguard Financials Index Fund ETF Shares | 3 | 5.8% | BANK OF AMERICA CORP, WELLS FARGO & COMPANY, CITIGROUP INC |
| KBWB | Invesco KBW Bank ETF | 3 | 5.8% | BANK OF AMERICA CORP, WELLS FARGO & COMPANY, CITIGROUP INC |
| FNCL | Fidelity MSCI Financials Index ETF | 3 | 5.8% | BANK OF AMERICA CORP, WELLS FARGO & COMPANY, CITIGROUP INC |
| IYF | iShares U.S. Financials ETF | 3 | 5.8% | BANK OF AMERICA CORP, WELLS FARGO & COMPANY, CITIGROUP INC |
Compares the top 10 reported holdings of each fund, so it's a floor on true overlap — two S&P 500 trackers overlap ~100% even when only 10 names are listed. Use the Stock Overlap tool to search by individual company.
Market Backdrop
10-Year Treasury Yield: 4.96% (as of 2026-10-22) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.
CBOE Volatility Index (VIX): 19.03 (as of 2026-10-22) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.
Federal Funds Rate: 3.75% (as of 2026-09-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.
What FPE's Fees Cost You
FPE charges an expense ratio of 0.83% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
FPE Dividend Income Estimator
FPE currently yields 6.41%. Enter an amount to see the income that implies, or set a monthly income target to see the investment it would take.
Based on the fund's current trailing yield, which varies with price and distributions — treat it as an estimate, not a guarantee. Yields are not adjusted for tax.
FPE Liquidity, Domicile & Tax Treatment
Liquidity: Average daily volume is 1.4M/day. Higher volume and a larger fund generally mean lower round-trip trading costs. AUM of $5.99B provides ample scale, supporting tight spreads and issuer commitment to keep the fund open.
Domicile & tax treatment: FPE is a US-domiciled, SEC-registered ('40 Act) exchange-traded fund. Dividends and capital gains distributions are reported to US investors on Form 1099-DIV, and the fund is not subject to the PFIC reporting or UCITS-specific rules that apply to Irish- or Luxembourg-domiciled funds. Non-US investors should note that US-domiciled ETFs are generally subject to 30% US withholding tax on dividends (unless reduced by treaty) and to US estate tax exposure on the position — Irish-domiciled UCITS ETFs tracking the same index often avoid both, which is why non-US residents frequently prefer the UCITS equivalent where one exists. This is general information, not tax advice — consult a tax professional for your situation.
FPE Performance History
| Period | Return |
|---|---|
| 1-Day | -0.18% |
| 1-Week | -0.63% |
| 1-Month | -1.50% |
| 3-Month | -3.46% |
| 6-Month | -4.00% |
| YTD | -2.96% |
| 1-Year | -2.43% |
| 3-Year | +29.96% |
How FPE Compares to Other Preferred & Convertible ETFs
| Rank | Grade | Ticker | Name | 1-Year | Exp. Ratio | AUM |
|---|---|---|---|---|---|---|
| #260 | C |
ICVT | iShares Convertible Bond ETF | +6.16% | 0.2% | $8.10B |
| #279 | C |
CWB | State Street SPDR Bloomberg Convertible Securities ETF | +6.37% | 0.4% | $5.55B |
| #335 | C |
PFXF | VanEck Preferred Securities ex Financials ETF | +0.48% | 0.4% | $2.37B |
| #365 | C |
PFF | iShares Preferred and Income Securities ETF | -3.57% | 0.45% | $12.3B |
| #379 | C |
PFFD | Global X U.S. Preferred ETF | -5.69% | 0.23% | $2.11B |
| #393 | D |
FPE | First Trust Preferred Securities and Income ETF | -2.43% | 0.83% | $5.99B |
| #402 | D |
PGX | Invesco Preferred ETF | -8.66% | 0.5% | $3.61B |
| #414 | D |
PSK | State Street SPDR ICE Preferred Securities ETF | -8.86% | 0.45% | $637M |